New beginnings: HDFC Bank’s net profit post-merger stands at ₹16,811 crore

• HDFC Bank’s Q2 consolidated net revenues of the merged entity at ₹66,317 crore.
• Its gross NPAs came in at 1.34% of gross advances, and were at 1.41% as of June end on a proforma merged basis.
• Total deposits grew by approximately ₹1.1 lakh crore during the quarter post-merger.

In its maiden earnings report since its merger with HDFC, HDFC Bank reported consolidated net revenues at ₹66,317 crore for the second quarter. The consolidated net profit of the merged entity is at ₹16,811 crore as of September end. The gross non-performing assets (NPAs) of the merged balance sheet is at ₹31,577 crore or 1.34% of gross advances.

On a proforma merged basis, gross NPAs were at 1.41% as on June 30, 2023, the company said in a press release. Before the merger however, they stood at 1.23% as of September 2022.

Its net NPAs are 0.34% of the net advances for the second quarter.

Since it’s the first earnings report since the HDFC-HDFC Bank merger, it cannot be compared to the earlier quarters. But its net profits went up by 114% and net profits by 51.1% on a year-on-year basis.

Total deposits showed a healthy growth of approximately ₹1.1 lakh crore during the quarter post-merger. They stood at ₹21,72,858 crore as of September end, the company said in its press release.

Its provisions and contingencies for the quarter stood at ₹2,904 crore for the quarter. Before the merger, in the same quarter last year, provisions were higher at ₹3,240 crore.

The bank’s capital adequacy ratio was at 19.5% as compared to the regulatory requirement of 11.7%.

The total credit cost ratio for the quarter is at 0.49% as compared to 0.87% in the same quarter last year.

The total balance sheet of the bank surged to ₹34,16,310 crore as compared to ₹22,27,893 crore the year before, before the merger.

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— (@Stock_Phoenix) October 14, 2023